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	NOTICE OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON THE RELEVANT DEED TAX ISSUES CONCERNING ASSIGNMENT OF THE RIGHT TO USE STATE-OWNED LAND

	(No. 134 [2004] of the Ministry of Finance & State Administration of Taxation, August 3, 2004)


SUBJECT : LAND USE TAXATION; STATE-OWNED LAND
ISSUING DEPARTMENT : MINISTRY OF FINANCE OF THE PEOPLE'S REPUBLIC OF CHINA, STATE ADMINISTRATION OF TAXATION
ISSUE DATE : 08/03/2004
IMPLEMENT DATE : 08/03/2004
LENGTH : 393 words
TEXT :

In order to further clarify the deed tax policies relating to the assignment of the right to use state-owned land, promote the progress of putting public dwellings on market, we hereby give our notice as follows regarding the relevant deed tax policies:

I. In case of assignment of a right to use state-owned land, the price for assessing the deed tax shall be all the economic benefits paid by the assignee for obtaining the right to use the land.

(1) In case of assignment by agreement, the price for assessing the deed tax shall be the transaction price. The transaction price includes the currencies, properties in kind, intangible assets and other economic benefits, which ought to be paid by the assignee, such as the charges for assignment of the land, the land compensation fee, the resettlement subsidies, the compensation fees for on-ground attachments and green seedlings, the compensation fee for resettlement, the auxiliary fees for municipal infrastructural construction, etc.

Where there is no transaction price or the transaction price is obviously low, the collection organ may determine the said price in the following two methods in sequence:
1. Valuated price: the price which is comprehensively determined on the basis of the same land section and the same kind of real estate by a real estate evaluation institution established upon government approval, and is confirmed by the local taxation organ.
2. Basic land price: the basic land price announced by the people's government at the county level or above.

(2) In case of assignment through bidding, the price for assessing the deed tax shall usually be determined as the transaction price for winning the bid, which includes the charges for assignment of the land, auxiliary fees for municipal infrastructural construction and various compensation expenditures.

II. Whoever obtained the right to use land from allotment first, and is then approved to obtain the right to use the land in a method of assignment, shall pay the deed tax in accordance with the law, and the basis for assessing the tax payable shall be the charges to be supplemented for assignment of the land and other assignment expenses.

III. If a public dwelling has become a dwelling with full private title due to supplement of the charges for assignment of the land and other assignment expenses, the deed tax for land title assignment shall be exempted.